US inflation data will set the tone for the greenback later in the day
EURUSD
After a brief bounce on Monday to last week’s highs in the 104.25 zone, the US dollar is back under pressure today to settle back below the 104.00 figure that remains in the market focus. The USD index briefly jumped to the 104.26 mark that capped gains again. As such, the greenback saw fresh local highs but failed to preserve the upside momentum as market sentiment remains mixed. After finding support around 103.83 earlier in the day, the USD stays downbeat in early European deals, struggling to attract buying interest as traders remain cautious. The DXY is oscillating around 103.90 on Monday, looking modestly bearish as risk sentiment in the global financial markets has improved in anticipation of US inflation data that will set the tone for the greenback later in the day. Against this backdrop, EURUSD bounced from local lows to turn positive after two weeks of losses in a row. The pair thus climbed back above the 100-DMA, still trading below the 1.0800 figure on Tuesday. The pair is changing hands around 1.0776 as of writing, up 0.14% on the day. In the immediate term, the euro needs to regain the 1.0800 mark in order to attract more robust demand.
GBPUSD
The pound finished higher on Monday, retaining a modest bullish bias today. However, the pair refrains from a more decisive bounce at this stage despite dollar weakness, suggesting the cable could resume the decline after a pause. Also, the pair is now stuck between the key SMAs. In early European deals on Tuesday, the cable looks slightly upbeat, holding below the 1.2600 figure. As such, the cable stays relatively bullish now after the recent slide to local lows around the 1.2500 figure. During the European deals, the pair keeps trying to attract more decisive demand. The daily RSI looks directionless in neutral territory, suggesting buyers could stay on the sidelines in the immediate term. In recent trading, GBPUSD was changing hands around 1.2566, up 0.11% on the day. On the flip side, the immediate significant support is now represented by the 1.2540 zone, followed by the 1.2500 intermediate barrier where the 200-DMA arrives. On the upside, a decisive ascent above 1.2600 would pave the way to the recent cyclical highs.
USDJPY
The USDJPY pair reversed south on Tuesday after a two-day recovery that was capped by the 146.60 zone. During the previous session, the dollar saw a brief climb to local highs. Since then, the greenback has lost recovery momentum to suffer solid intraday losses so far, still staying under pressure in early European deals. The pair slid to local lows around 145.20 earlier in the day before bouncing slightly in recent trading. After finding support around the mentioned lows, the dollar holds deeply in negative territory, suggesting the selling pressure could persist for some time. Also, the pair stays well below the 20-DMA, which implies that downside risks still persist for the time being. The dollar was last seen changing hands around 145.48, down 0.45% on the day. Now, the greenback needs to decisively regain the 146.00 mark in order to stage a local recovery. The daily RSI looks bearish in neutral territory, suggesting the dollar could see persistent downside momentum in the immediate term. On the hourly timeframes, the technical picture looks neutral, with the RSI bullish in neutral territory while prices stay below the key SMAs.
XAUUSD
The price of gold stays relatively upbeat after a slide from all-time highs seen above the $2,100 level last week. On Monday, the metal fell back below the ascending 20-DMA for the first time in three weeks to register local lows in the $1,975 area before bouncing slightly. As such, the technical picture has improved marginally, but the bullion still holds below the $2,000 figure. Should gold regain this immediate barrier in the near term, a stronger bounce could be expected. If the pressure reemerges any time soon, the bullion could see another retreat in the days to come. Gold was last seen changing hands around $1,986, up 0.38% on the day. On the weekly timeframes, the bullion looks bearish as a result of a retreat from all-time tops, while a wider picture remains relatively upbeat. On the upside, the immediate significant target is now represented by the $2,000 region, followed by the $2,007 zone.
